It also aims to supply 35% of its total energy from renewables, with half of its electricity delivered by wind farms. The agreement also covers advances in renewable heat, smart grids, and biogas among other green technologies.

"Denmark will once again be the global leader in the transition to green energy," said Lidegaard. "This will prepare us for a future with increasing prices for oil and coal. Moreover, it will create some of the jobs that we need so desperately, now and in the coming years."

The agreement will help Denmark achieve its goal of supplying 100% of its energy from renewables by 2050, including electricity, heating, industry and transport.

Lidegaard added that the commitments would prevent consumer energy bills from soaring, by reducing the country's dependence on the volatile price of fossil fuels.

The commitment could also provide a boost to efforts across the European Union to increase its carbon emissions reduction target to 30% from the current 20%.